Wipro's share price jumps over 7% to hit one-year high; how strong is this uptrend?

Shares of Wipro Ltd rose sharply in Friday's trading session to scale their one-year high level. The stock surged 7.38 per cent to hit a 52-week high of Rs 466.15. Considering this price, the scrip has gained 32.49 per cent from its one-year low of Rs 351.85, a level seen earlier this year on April 17. Wipro saw heavy trading volumes today as 19.93 lakh shares were last seen changing hands on BSE. The figure was way more than the two-week average volume of 3.46 lakh shares.

Turnover on the counter came at Rs 90.79 crore, commanding a market capitalisation (m-cap) of Rs 2,41,721.34 crore. There were 15,64,758 buy orders against sell orders of 2,48,322 shares.

Technical analysts largely suggested that near-term support on the counter could be seen at Rs 445 level. On the higher side, immediate resistance may be found above the Rs 500 zone. That said, one of the analysts believes a substantial upward movement in Wipro's stock is likely on the cards.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 445 and resistance at Rs 500 level. Expected trading range will be between Rs 430 and Rs 530 for a month."

DRS Finvest founder Ravi Singh said, "The stock is likely to see Rs 510-512 levels in the near term. Keep a strict stop loss placed at Rs 445."

AR Ramachandran from Tips2trades said, "Wipro stock price looks slightly bullish but also overbought on daily charts with next resistance at Rs 480. A daily close below support of Rs 447 could lead to Rs 385 in the near term."

Kunal V Parar, VP of Technical Research and Algo at Choice Broking, said, "The stock is currently trading above its 50-week moving average, indicating a sustained upward movement. We anticipate a substantial upward movement in the stock, targeting levels between Rs 538 and Rs 622. On the downside, critical support is placed at Rs 405.

Motilal Oswal Securities, in its recent note on Wipro, said an improvement in large deal wins and quarterly deal total contact value (TCV) of $1 billion-plus indicate that the IT firm's strategies are proving to be effective despite challenging macroeconomic conditions.

Wipro, Motilal said, is doubling down its efforts to improve margins. "Although the IT firm has witnessed partial recovery post the inorganic investments, it is making further efforts to turnaround and improve the margin profile of the acquired entities," the brokerage mentioned.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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